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Elon Musk and brother being investigated for insider trading

  • By Al Mayadeen Net
  • Source: Agencies
  • 25 Feb 2022 16:32
  • 2 Shares
2 Min Read

Elon's brother, Kimbal, sold Tesla shares a day before Elon asked Twitter if he should sell.

  • x
  • The SEC inquiry was sparked in part by the Tesla CEO's own tweets
    The SEC inquiry was sparked in part by the Tesla CEO's own tweets

The US Securities and Exchange Commission has reportedly opened possible insider trading by Tesla CEO Elon Musk and his brother Kimbal Musk.

The SEC investigation was sparked in part by Elon Musk's own tweets.

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Kimbal, who is a member of Tesla's board of directors, sold $108 million in Tesla shares last year. The sale happened just one day before Musk polled Twitter users whether he should sell 10% of his stake in Tesla, which made the company's share price decline.

The SEC issued a subpoena to Tesla 10 days after the incident on November 16, looking for financial information.

Read more: Elon Musk Exposed: The Truth Behind the Tweet

 

According to insider trading laws, employees and board members are not allowed to trade based on non-public information about a company. Investigators seek to find out whether Kimbal sold his shares because his brother Elon informed him about the poll in advance.

Tesla and Elon Musk have been in hot water on a number of occasions, from Tesla cars being recalled, to allowing drivers to play games while driving, accusations of racial segregation in Tesla factories, and the Neuralink destroying monkeys' brains before killing them.

  • Elon Musk
  • Tesla

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